MCDB 150 - Lecture 19 - Economic Motivations for Fertility

Lecture 19 - Economic Motivations for Fertility

Overview

Data shows, consistently, that poor people have more children than rich people; economically speaking, children are an inferior good. Children are production goods because they do work, consumption goods because they are enjoyable, and investment goods because they support parents in old age. Jobs in the modern sector require education and health. To pay for this, parents have to focus their resources on fewer children.